Self-Regulatory Organizations; Options Clearing Corporation; Notice of Filing of Proposed Rule Change Relating to the Auction Process Under Options Clearing Corporation Rule 1104, 42784-42786 [2012-17664]
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42784
Federal Register / Vol. 77, No. 140 / Friday, July 20, 2012 / Notices
necessary or appropriate in furtherance
of the purposes of the Act. To the
contrary, the Exchange believes the
proposal is pro-competitive. First, the
proposal would enable the Exchange to
provide market participants with an
opportunity to execute their strategies
wholly on their preferred market,
namely the Exchange. And second, the
proposal would diminish the potential
for foregone market opportunities on the
Exchange caused by the need to use a
more advantageous (that is, intervalprecise) platform than STOs currently
allow.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were either
solicited or received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the publication date
of this notice in the Federal Register or
within such longer period (1) as the
Commission may designate up to 90
days of such date if it finds such longer
period to be appropriate and publishes
its reasons for so finding or (2) as to
which the self-regulatory organization
consents, the Commission will:
(A) By order approve or disapprove
such proposed rule change; or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
mstockstill on DSK4VPTVN1PROD with NOTICES
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act. In
addition, the Commission specifically
requests comment on the following:
• As outlined in detail above in Item
II.A.1, Phlx has proposed that the
interval between strike prices on STOs
shall be $0.50 or greater where the strike
price is less than $75 and $1 or greater
where the strike price is between $75
and $150. The International Securities
Exchange, LLC (‘‘ISE’’) has proposed a
similar rule change to its short term
option series program (the ‘‘ISE STOS
Program’’) that would allow trading at
$0.50 strike price intervals for option
classes that trade in $1 increments and
are in the ISE STOS Program.25 Do
commenters have any views regarding
implementation of both the ISE Proposal
25 See Securities Release No. 67083 (May 31,
2012), 77 FR 33543 (June 6, 2012) (SR–ISE–2012–
33) (the ‘‘ISE Proposal’’).
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Jkt 226001
and the instant proposal, if approved,
that the Commission should take into
consideration? If so, please provide
detail.
• Both Phlx and ISE included within
their respective filings a discussion of
the anticipated impact of its proposal on
capacity and liquidity.26 Do
commenters have views on whether,
and if so how, implementation of both
the ISE Proposal and the instant
proposal, if approved, would impact
liquidity or capacity that the
Commission should take into
consideration? If so, please provide
detail.
Comments may be submitted by any
of the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rulecomments@sec.gov. Please include File
Number SR–Phlx–2012–78 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–Phlx–2012–78. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. The text of the
proposed rule change is available on the
Commission’s Web site at https://
www.sec.gov. Copies of such filing also
will be available for inspection and
copying at the principal office of the
Exchange. All comments received will
be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–Phlx–
2012–78 and should be submitted on or
before August 10, 2012.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.27
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–17713 Filed 7–19–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67443; File No. SR–OCC–
2012–11]
Self-Regulatory Organizations;
Options Clearing Corporation; Notice
of Filing of Proposed Rule Change
Relating to the Auction Process Under
Options Clearing Corporation Rule
1104
July 16, 2012.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder 2
notice is hereby given that on July 3,
2012, The Options Clearing Corporation
(‘‘OCC’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change as described
in Items I, II and III below, which Items
have been prepared primarily by OCC.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Among other things, the proposed
rule change would add an interpretation
.02 to Rule 1104 to provide a further
general description of such a private
auction process by which OCC may
liquidate all or any part of a suspended
Clearing Member’s accounts.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of
27 17
26 See
ISE Proposal, id., at 33545; supra, pp. 8,
10.
PO 00000
Frm 00093
Fmt 4703
Sfmt 4703
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Federal Register / Vol. 77, No. 140 / Friday, July 20, 2012 / Notices
and basis for the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of these statements may be examined at
the places specified in Item IV below.
The self-regulatory organization has
prepared summaries, set forth in
sections (A), (B), and (C) below, of the
most significant aspects of such
statements.
mstockstill on DSK4VPTVN1PROD with NOTICES
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In a recent rule change, OCC proposed
and the Commission approved
provisions to OCC Rule 1104 and Rule
1106 to specifically provide that, in
addition to all other permitted means of
liquidating positions and collateral in
the accounts of a suspended Clearing
Member, OCC may, at its discretion,
liquidate such positions and collateral
through a private auction process.3 The
purpose of the current proposed rule
change is to add an interpretation .02 to
Rule 1104 to provide a further general
description of such a private auction
process by which OCC may liquidate all
or any part of a suspended Clearing
Member’s accounts. The proposed
interpretation would set forth the basic
parameters of such an auction,
including the process for creating a
standing pool of pre-qualified potential
bidders, criteria for fixing the number of
bidders to participate in any particular
auction and the method of selection of
such bidders. Such criteria are intended
to ensure an orderly and robust auction
and to ensure that auction bidders are
financially able to make payment for
and assume the obligations of the
collateral and positions they are
acquiring and able to manage the risk
thereof and/or trade out of the positions
without creating unnecessary further
risk to the Corporation. Interpretations
cross-referencing interpretation .02 to
Rule 1104 would be added following
Rules 1106, 1107, 2210, and 2210A, and
the latter three rules are proposed to be
amended to provide that the auction
process is applicable to assets and
obligations arising from exercised and
assigned options and matured,
physically-settled futures and to assets
and obligations arising from the closeout of stock loan and borrow positions
as well.
3 See Exchange Act Release No. 65654 (October
28, 2011), 76 FR 68236 (November 3, 2011) (SR–
OCC–2011–08) (Order Approving Proposed Rule
Change, as Modified by Amendment No. 1, to
Provide Specific Authority to Use an Auction
Process As One of the Means to Liquidate a
Defaulting Clearing Member’s Accounts).
VerDate Mar<15>2010
18:18 Jul 19, 2012
Jkt 226001
Each private auction will be a ‘‘sealed
bid’’ auction in which pre-qualified
bidders selected by OCC will submit
confidential bids such that no bidder
will know the bid information of any of
the other bidders. The pool of
prequalified potential bidders in any
auction would consist of all Clearing
Members who are interested in
participation and willing to execute the
required documentation. Participation
in the pre-qualified bidder pool by
certain non-Clearing Members would
also be solicited. Should the
Corporation determine to hold a private
auction, the Corporation will review the
pool of pre-qualified auction bidders
and would seek to invite a fixed number
of bidders for the auction based on
objective criteria that the Corporation
believes would optimize the
effectiveness of the auction process.
OCC believes that fixing the size of the
desired bidder group at a number that
is either too large or too small could
have an adverse impact on the
effectiveness and competitiveness of the
auction process. A group that is too
small would not provide adequate
competition among bidders, while
setting the target size for the group of
bidders at too large a number would
discourage participation because of fear
that the composition of the portfolios to
be bid on would be leaked beyond the
bidder group, allowing non-bidders to
trade ahead of the auction to the
disadvantage of bidders in the auction.
Attempting to organize too large a group
of bidders would also cause potentially
costly delay in the auction process. OCC
would most likely use its secure
ENCORE system or telephone contact to
invite selected pre-qualified bidders to
submit bids in the private auction. No
invited bidder would be obligated to bid
in the private auction.
At the conclusion of a private auction,
OCC will, in its discretion, select the
best bid submitted for the auctioned
portfolio based on the totality of the
circumstances.4 For example, where an
auction portfolio has a negative net asset
value, negative bids may be submitted
which indicate how much OCC would
be required to pay a bidder to assume
the auction portfolio, and the lowest
rather than the highest bid may
therefore be the best bid. Other factors
such as any condition attached to a bid
may influence the choice of best bid.
Finally, in order to increase legal
certainty under potentially applicable
provisions of the Uniform Commercial
4 The Staff notes for clarity that OCC has no
specific procedures to announce auctions or their
results other than notices to the winning bidders
and losing bidders as specified in proposed Rule
1104(e).
PO 00000
Frm 00094
Fmt 4703
Sfmt 4703
42785
Code, the proposed interpretations
would require Clearing Members to
acknowledge that the private auction
process is a commercially reasonable
method of liquidating a suspended
Clearing Member’s accounts and that
notice of a private auction to a
suspended Clearing Member is not
required under the auction process.
OCC believes that the proposed
changes to OCC’s Rules are consistent
with the purposes and requirements of
Section 17A of the Act, because they are
designed to assure the safeguarding of
securities and funds which are in the
custody or control of OCC by providing
appropriate procedures for the
auctioning of positions and collateral of
a suspended clearing member. The
changes are intended to facilitate the
performance of OCC’s obligations with
respect to the prompt and accurate
clearance and settlement of securities
transactions and the protection of
securities investors and the public
interest. The proposed rule change is
not inconsistent with the By-Laws and
Rules of OCC, including any proposed
to be amended.
(B) Self-Regulatory Organization’s
Statement on Burden on Competition
OCC does not believe that the
proposed rule change would impose any
burden on competition.
(C) Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
Written comments were not and are
not intended to be solicited with respect
to the proposed rule change and none
have been received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period
up to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
the self-regulatory organization
consents, the Commission will:
(A) By order approve or disapprove
the proposed rule change or
(B) Institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
E:\FR\FM\20JYN1.SGM
20JYN1
42786
Federal Register / Vol. 77, No. 140 / Friday, July 20, 2012 / Notices
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commissions Internet
comment form (https://www.sec.gov/
rules/sro.shtml) or
Send an email to rulecomments@sec.gov. Please include File
Number SR–OCC–2012–11 on the
subject line.
Paper Comments
mstockstill on DSK4VPTVN1PROD with NOTICES
Send paper comments in triplicate to
Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–OCC–2012–11. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Section, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filings will also be available for
inspection and copying at the principal
office of OCC and on OCC’s Web site at
https://www.optionsclearing.com/
components/docs/legal/
rules_and_bylaws/sr_occ_12_11.pdf.
All comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–OCC–2012–11 and should
be submitted on or before August 10,
2012.
For the Commission by the Division of
Trading and Markets, pursuant to delegated
authority.5
Kevin M. O’Neill,
Deputy Secretary.
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
[FR Doc. 2012–17664 Filed 7–19–12; 8:45 am]
(A) Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–67444; File No. SR–
NYSEMKT–2012–20]
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending Rule 134—
Equities To Shorten the Time Frame
for Assigning the Contra Party to
Unresolved Account Balances in the
Exchange’s Online Comparison
System
July 16, 2012.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’)1 and Rule 19b–4 thereunder,2
notice is hereby given that on July 5,
2012, NYSE MKT LLC (‘‘Exchange’’ or
‘‘NYSE MKT’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 134—Equities to shorten the time
frame for assigning the contra party to
unresolved account balances in the
Exchange’s Online Comparison System.
The text of the proposed rule change is
available on the Exchange’s Web site at
www.nyse.com, at the principal office of
the Exchange, and at the Commission’s
Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
5 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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18:18 Jul 19, 2012
Jkt 226001
PO 00000
Frm 00095
Fmt 4703
Sfmt 4703
1. Purpose
The Exchange proposes to amend
Exchange Rule 134(e)(iii)—Equities
(Differences and Omissions-Cleared
Transactions) to shorten the time frame
for assigning a designated market maker
(‘‘DMM’’) unit as the contra party for
any unresolved omnibus account
balances in the Exchange’s Online
Comparison System (‘‘OCS’’).
Background
The Exchange operates its OCS to
assist in trade settlement. OCS conducts
comparison processing, which includes
matching initial trade submissions,
correction processing, omnibus
processing and questioned trade (‘‘QT’’)
resolution for trades that take place on
the Exchange. The OCS system is used
by Exchange members and member
organizations in their roles as clearing
firms, brokers and DMM units for
Exchange trade executions. OCS is
linked internally to Exchange trading
systems and externally to The National
Securities Clearing Corporation.3
To facilitate the comparison process,
the Exchange utilizes omnibus account
designations to record trade data.4 Using
omnibus account designations allows
for universal contras for one trade side,
reducing the number of different data
elements that have to be independently
recorded into a broker’s hand-held
device or written on a Floor report for
a trade.
In May 2009, the Exchange amended
Rule 134—Equities to enable it to
assign, on the second business day after
the trade date (‘‘T+2’’), any open
balance in any of the omnibus accounts
it uses to compare trades to either a
DMM Unit or the member organization
that has been identified as the clearing
firm for one side of an unresolved
trade.5 Specifically, the Exchange added
new subsection (e)(iii) to Rule 134—
3 National Securities Clearing Corporation
(‘‘NSCC’’) is a clearing agency registered with the
Commission under Section 17A of the Securities
Exchange Act of 1934. NSCC provides centralized
clearance and settlement services for equity security
trades for U.S. broker-dealers.
4 An ‘‘omnibus account’’ is an account in which
the transactions of multiple individual participants
are combined.
5 See Securities Exchange Act Release No. 59997
(May 28, 2009), 74 FR 28086 (June 12, 2009) (SR–
NYSEAmex–2009–20).
E:\FR\FM\20JYN1.SGM
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]]>Agencies
[Federal Register Volume 77, Number 140 (Friday, July 20, 2012)]
[Notices]
[Pages 42784-42786]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-17664]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-67443; File No. SR-OCC-2012-11]
Self-Regulatory Organizations; Options Clearing Corporation;
Notice of Filing of Proposed Rule Change Relating to the Auction
Process Under Options Clearing Corporation Rule 1104
July 16, 2012.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder \2\ notice is hereby given that
on July 3, 2012, The Options Clearing Corporation (``OCC'') filed with
the Securities and Exchange Commission (``Commission'') the proposed
rule change as described in Items I, II and III below, which Items have
been prepared primarily by OCC. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Among other things, the proposed rule change would add an
interpretation .02 to Rule 1104 to provide a further general
description of such a private auction process by which OCC may
liquidate all or any part of a suspended Clearing Member's accounts.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of
[[Page 42785]]
and basis for the proposed rule change and discussed any comments it
received on the proposed rule change. The text of these statements may
be examined at the places specified in Item IV below. The self-
regulatory organization has prepared summaries, set forth in sections
(A), (B), and (C) below, of the most significant aspects of such
statements.
(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In a recent rule change, OCC proposed and the Commission approved
provisions to OCC Rule 1104 and Rule 1106 to specifically provide that,
in addition to all other permitted means of liquidating positions and
collateral in the accounts of a suspended Clearing Member, OCC may, at
its discretion, liquidate such positions and collateral through a
private auction process.\3\ The purpose of the current proposed rule
change is to add an interpretation .02 to Rule 1104 to provide a
further general description of such a private auction process by which
OCC may liquidate all or any part of a suspended Clearing Member's
accounts. The proposed interpretation would set forth the basic
parameters of such an auction, including the process for creating a
standing pool of pre-qualified potential bidders, criteria for fixing
the number of bidders to participate in any particular auction and the
method of selection of such bidders. Such criteria are intended to
ensure an orderly and robust auction and to ensure that auction bidders
are financially able to make payment for and assume the obligations of
the collateral and positions they are acquiring and able to manage the
risk thereof and/or trade out of the positions without creating
unnecessary further risk to the Corporation. Interpretations cross-
referencing interpretation .02 to Rule 1104 would be added following
Rules 1106, 1107, 2210, and 2210A, and the latter three rules are
proposed to be amended to provide that the auction process is
applicable to assets and obligations arising from exercised and
assigned options and matured, physically-settled futures and to assets
and obligations arising from the close-out of stock loan and borrow
positions as well.
---------------------------------------------------------------------------
\3\ See Exchange Act Release No. 65654 (October 28, 2011), 76 FR
68236 (November 3, 2011) (SR-OCC-2011-08) (Order Approving Proposed
Rule Change, as Modified by Amendment No. 1, to Provide Specific
Authority to Use an Auction Process As One of the Means to Liquidate
a Defaulting Clearing Member's Accounts).
---------------------------------------------------------------------------
Each private auction will be a ``sealed bid'' auction in which pre-
qualified bidders selected by OCC will submit confidential bids such
that no bidder will know the bid information of any of the other
bidders. The pool of prequalified potential bidders in any auction
would consist of all Clearing Members who are interested in
participation and willing to execute the required documentation.
Participation in the pre-qualified bidder pool by certain non-Clearing
Members would also be solicited. Should the Corporation determine to
hold a private auction, the Corporation will review the pool of pre-
qualified auction bidders and would seek to invite a fixed number of
bidders for the auction based on objective criteria that the
Corporation believes would optimize the effectiveness of the auction
process. OCC believes that fixing the size of the desired bidder group
at a number that is either too large or too small could have an adverse
impact on the effectiveness and competitiveness of the auction process.
A group that is too small would not provide adequate competition among
bidders, while setting the target size for the group of bidders at too
large a number would discourage participation because of fear that the
composition of the portfolios to be bid on would be leaked beyond the
bidder group, allowing non-bidders to trade ahead of the auction to the
disadvantage of bidders in the auction. Attempting to organize too
large a group of bidders would also cause potentially costly delay in
the auction process. OCC would most likely use its secure ENCORE system
or telephone contact to invite selected pre-qualified bidders to submit
bids in the private auction. No invited bidder would be obligated to
bid in the private auction.
At the conclusion of a private auction, OCC will, in its
discretion, select the best bid submitted for the auctioned portfolio
based on the totality of the circumstances.\4\ For example, where an
auction portfolio has a negative net asset value, negative bids may be
submitted which indicate how much OCC would be required to pay a bidder
to assume the auction portfolio, and the lowest rather than the highest
bid may therefore be the best bid. Other factors such as any condition
attached to a bid may influence the choice of best bid.
---------------------------------------------------------------------------
\4\ The Staff notes for clarity that OCC has no specific
procedures to announce auctions or their results other than notices
to the winning bidders and losing bidders as specified in proposed
Rule 1104(e).
---------------------------------------------------------------------------
Finally, in order to increase legal certainty under potentially
applicable provisions of the Uniform Commercial Code, the proposed
interpretations would require Clearing Members to acknowledge that the
private auction process is a commercially reasonable method of
liquidating a suspended Clearing Member's accounts and that notice of a
private auction to a suspended Clearing Member is not required under
the auction process.
OCC believes that the proposed changes to OCC's Rules are
consistent with the purposes and requirements of Section 17A of the
Act, because they are designed to assure the safeguarding of securities
and funds which are in the custody or control of OCC by providing
appropriate procedures for the auctioning of positions and collateral
of a suspended clearing member. The changes are intended to facilitate
the performance of OCC's obligations with respect to the prompt and
accurate clearance and settlement of securities transactions and the
protection of securities investors and the public interest. The
proposed rule change is not inconsistent with the By-Laws and Rules of
OCC, including any proposed to be amended.
(B) Self-Regulatory Organization's Statement on Burden on Competition
OCC does not believe that the proposed rule change would impose any
burden on competition.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants or Others
Written comments were not and are not intended to be solicited with
respect to the proposed rule change and none have been received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve or disapprove the proposed rule change or
(B) Institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act.
[[Page 42786]]
Comments may be submitted by any of the following methods:
Electronic Comments
Use the Commissions Internet comment form (https://www.sec.gov/rules/sro.shtml) or
Send an email to rule-comments@sec.gov. Please include File Number
SR-OCC-2012-11 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-OCC-2012-11. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Section, 100 F Street
NE., Washington, DC 20549, on official business days between the hours
of 10:00 a.m. and 3:00 p.m. Copies of such filings will also be
available for inspection and copying at the principal office of OCC and
on OCC's Web site at https://www.optionsclearing.com/components/docs/legal/rules_and_bylaws/sr_occ_12_11.pdf.
All comments received will be posted without change; the Commission
does not edit personal identifying information from submissions. You
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-OCC-2012-11
and should be submitted on or before August 10, 2012.
For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\5\
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\5\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-17664 Filed 7-19-12; 8:45 am]
BILLING CODE 8011-01-P
